TSXV – BEN.H
VANCOUVER, BC, May 8, 2023
/CNW/ - Butte Energy Inc. (TSXV: BEN.H) (the
"Company") is pleased to announce that, further to its news release
of April 26, 2023, the Company has
closed its non-brokered private placement for gross proceeds of
$250,000 (the "Private
Placement").
In closing the Private Placement, the Company issued an
aggregate of 1,250,000 units (each, a "Unit") at a price of
$0.20 per unit consisting of
1,250,000 common shares (each, a "Common Share") and 1,250,000
share purchase warrants (each, a "Warrant"). All Warrants are
exercisable at a price of $0.30 per
share for one Common Share in the capital of the Company for a
period of one year from the date of issuance, expiring May 8, 2024.
No finder's fees were payable by the Company in connection with
the Private Placement.
All securities issued in connection with the Private Placement
are subject to a four month and one day statutory hold period
expiring on September 9, 2023.
Proceeds from the financing will be used for general working
capital purposes.
Related Parties
Two insiders of the Company participated in the Private
Placement and acquired an aggregate of 950,000 Units. The purchases
by these insiders constitute "related party transactions" within
the meaning of Multilateral Instrument 61-101 – Protection of
Minority Security Holders in Special Transactions ("MI 61-101").
The issuances are exempt from the formal valuation and minority
shareholder approval requirements of MI 61-101 as they are
distributions of securities for cash and the fair market value of
the Units issued to, and the consideration paid by, the insiders
did not exceed 25% of the Company's market capitalization. No new
insiders were created, nor any change of control occurred, as a
result of the Private Placement.
On behalf of BUTTE ENERGY INC.
"Geir Liland"
Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Butte Energy Inc.